Balfour Beatty’s UK operation part is connected way to present margins of 2-3 per cent for full-year 2022, with a precocious currency equilibrium successful the archetypal half.
In a trading update for the archetypal 4 months of the year, the radical said its mean monthly nett currency equilibrium had risen to £800m, which was £131m supra the full-year mean for 2021.
Through the people of the year, the steadfast is expecting its mean monthly nett currency to drop, compared with these aboriginal months, due to the fact that of a stock buyback of £150m, which it volition implicit astatine the extremity of the year.
The group, which operates successful the UK, Hong Kong and US infrastructure markets, said its bid publication astatine the extremity of March stood astatine £15.6bn, which was £500m little than successful the preceding 3 months.
Its enactment services division, which works successful powerfulness and roadworthy and obstruction maintenance, is expecting margins of 6-8 per cent.
In 2020, the contractor decided to retreat from utilities enactment successful the state and h2o sectors, and decided not to rebid for this work. As a result, it is expecting these industry-standard margins connected a little gross basal than before.
Balfour Beatty radical main enforcement Leo Quinn said the tier was looking astatine a beardown year, with a absorption connected moving successful favourable markets and a selective bid book.
Quinn said: “The spot of our equilibrium expanse and the higher prime of our bid publication volition alteration america to maximise these opportunities for profitable growth, portion remaining resilient to the existent macro-economic challenges.”
For the twelvemonth ending connected 31 December 2021, the radical reported a pre-tax nett of £87m connected turnover of £8.2bn. Balfour Beatty’s UK operation concern reported a nonaccomplishment of £2m connected an 18 per cent emergence successful revenue for the aforesaid period. The contractor attributed the losses to a private-sector spot task successful cardinal London and said it would nary longer bid for fixed-price jobs of this quality successful the city.